Appraising the dual-use technology as a strategy for bolstering defence industry

IN a world where technology defines power, Malaysia stands at a crossroads.

The line separating civilian and military innovation has blurred, giving rise to dual-use technologies systems and inventions that serve both economic development and national defence.

Artificial intelligence, satellites, drones, advanced materials and biotechnology now drive not only global commerce but also the very foundations of national security. Malaysia has long recognised this intersection.

Yet, despite progress in research, defence procurement and industrial growth, the nation still struggles to convert scientific advances into strategic advantage. The challenge is not a lack of talent or ambition, but it is the absence of an integrated industry-defence innovation ecosystem capable of translating ideas into real-world strength.

While Major Power such as the United State and China have embedded dual-use technology as a pillar of their economic and security policy, Malaysia’s framework remains fragmented. The gap between civilian research and development (R&D) and defence application persists, slowing innovation and reducing strategic autonomy.

Institutions like the Science and Technology Research Institute for Defence (Stride) were created to bridge this gap. While Stride has established important roles, closer coordination with universities, private industry and agencies such as Science, Technology and Innovation Ministry (Mosti) and Investment, Trade and Industry Ministry (Miti) would further amplify its impact.

Science and Technology Research Institute for Defence (Stride).

Collaboration remains ad hoc, with limited shared funding mechanisms, weak technology-transfer pathways and slow commercialisation cycles.

The result is a paradox; Malaysia invests in technology but struggles to retain value within its own ecosystem. Too many innovations die in laboratories or end up being imported back at a higher cost through foreign intermediaries.

Meanwhile, the global pace of change is accelerating in artificial intelligence, cyber defence, unmanned systems and biotechnology reshaping power dynamics faster than policy frameworks can adapt. Without decisive integration between defence and industry, Malaysia risks becoming a passive consumer rather than an active innovator in technologies that determine national security, economic growth and strategic relevance.

Dual-use technology is not a luxury, but it is a strategic necessity. The ability to harness civilian innovation for military preparedness and vice versa underpins the resilience of modern states.

For Malaysia, this presents three critical dimensions: security, sovereignty and sustainability.

Security and Strategic Autonomy

Malaysia’s geography and role in Asean make technological self-reliance a strategic imperative. Dependence on imports limits flexibility in times of crisis and exposes Malaysia to potential supply-chain disruptions.

A stronger domestic dual-use ecosystem that linking Stridewith private firms in robotics, electronics and AI would provide the armed forces with adaptive solutions and reduce long-term procurement costs.

It would also enable faster responses to hybrid threats such as cyberattacks and disinformation campaigns that increasingly target both military and civilian infrastructure.

Economic Competitiveness

Dual-use innovation also fuels economic diversification. Many of today’s civil technologies as such as GPS, internet, microchips originated from defence R&D. Malaysia’s industries in aerospace, communications and smart manufacturing could similarly benefit from defence-driven research.

However, limited venture capital desire and the absence of dedicated dual-use innovation grants make scaling difficult. Government funding remains siloed between ministries, discouraging cross-sector initiatives.

In contrast, countries like the United States and China have established clear pathways for defence-civilian technology transfer, often through public-private partnerships anchored in strategic priorities.

Regulatory and Institutional Bottlenecks

The Strategic Trade Act 2010 (STA 2010) was a milestone in regulating sensitive exports, aligning Malaysia with global non-proliferation regimes. Yet, it also introduced layers of bureaucracy that small innovators find difficult to navigate.

The challenge lies in balancing control with innovation ensuring that regulatory frameworks protect national interests without discouraging legitimate technological advancement.

Moreover, the multiplicity of agencies including Stride, Mosti, Miti, Defence Ministryand the National Cyber Security Agency (Nasca) creates overlapping mandates. Coordination issues lead to duplication, while industry players often face uncertainty about whom to approach for support.

Missed Potential in Space and Emerging Technologies

Malaysia’s experience with the RazakSAT satellite illustrates both ambition and vulnerability. Technical setbacks curtailed the program, but the expertise developed remains under-leveraged.

With the global space economy projected to exceed USD$1 trillion by 2040, Malaysia cannot afford to remain a spectator. Similarly, biotechnology and advanced materials vital for both health security and defence logistics remain underdeveloped.

The Covid-19 pandemic showed how quickly scientific breakthroughs can determine national survival. Integrating biotechnology into the defence innovation agenda would strengthen resilience against both biological and environmental threats.

Malaysia must urgently pivot from fragmented initiatives to a cohesive national strategy for dual-use technology one that aligns defence priorities with industrial capability and scientific innovation. The following high-level actions can help bridge the gap.

Establish a National Dual-Use Technology Council

A single high-level coordinating body comprising representatives from the Defence Minstry, Mosti, Miti, Stride, Nasca and the private sector should drive policy coherence, funding and implementation.

The council would align research agendas, eliminate overlap and set national priorities in key sectors such as AI, robotics, space and advanced materials.

Strengthen Stride’s Role as a Technology Catalyst

Stride should evolve beyond a research institute into a national integrator of defence innovation. By brokering partnerships between the military, academia and industry, Stride can ensure that laboratory breakthroughs translate into deployable technologies. Incentives should be created for joint projects, shared intellectual property and co-funded pilot programs.

Incentivise Private-Sector Participation

Malaysia’s industrial players from aerospace to electronics must see defence innovation as an opportunity, not a risk. Tax incentives, innovation vouchers and government-backed venture funds could encourage private firms to invest in dual-use R&D. Procurement policies should prioritise locally developed solutions with proven civilian spill-over benefits.

Modernise Regulatory Frameworks

The STA 2010 and related export-control laws should be reviewed to reflect modern realities. A tiered approval system could expedite lower-risk technologies while maintaining strict oversight on sensitive items. Simplifying procedures would make compliance easier for start-ups and SMEs, broadening participation in high-tech innovation.

Pursue International Collaboration Strategically

Partnerships with trusted nations in Asean and internationally can accelerate Malaysia’s technological maturity. However, these must be based on technology transfer and co-development, not dependency.

Programmes that enable Malaysian engineers to work alongside international counterparts on shared innovation projects can raise local capability and credibility.

The Moment for Bold Action

Malaysia’s journey toward becoming a high-income, secure and technologically advanced nation depends on how effectively it integrates defence and industry.

The dual-use technology agenda is not merely about weapons or research grants, it is about national confidence in the ability to innovate, protect and prosper.

If Malaysia can align its scientific creativity with its security imperatives, it will not only safeguard its sovereignty but also become a regional leader in innovation.

Time is of the essence. Global technological competition will not wait for Malaysia to reform its structures. The nation must act decisively bridging ministries, empowering Stride, mobilising industry and modernising laws.

The tools exist, what is needed now is the political will to connect them.

Captain Ahmad Azrul Maridan RMN is a member of the Royal Malaysian Navy and currently attending the National Resilience College, PUSPAHANAS. The views expressed in this article are his own and do not necessarily reflect those of Sinar Daily.